Remuneration Report

The salary bands define minimum and maximum salaries for the various management levels. They are regularly reviewed and adjusted by the FMC Board of Directors and must be approved by the G. and A. Duttweiler Foundation. Mitreva AG verifies that the salary bands are adhered to; the Chairwoman of the Board of Directors is informed of the results in writing.

Migros' remuneration model is clear and simple. Salaries are based consistently on rates of pay in the market, and the rationale of social capital is taken into account when fixing them. Workplace quality is a conscious component of responsible management. The benchmark working conditions, such as minimum wages, regulations for annual leave and employee training entitlements, are published on the Migros employment webpage.

For the remuneration of the Migros organs, the Board of Directors issues guidelines that are regularly reviewed and adjusted. These also apply to the external members of the boards of directors of FMC subsidiary companies. Internal members do not receive any form of remuneration for such mandates. The remuneration of the FMC Board of Directors is approved by the G. and A. Duttweiler Foundation.

The bonus-free remuneration and salary system is one of Migros' core values and is integral to the company's long-term development. The members of the Board of Directors and Executive Board do not receive any bonuses or profit-sharing for their duties at Migros. They are not entitled to any contractually regulated severance pay.

Fees paid to members of the Board of Directors

Members of the FMC Board of Directors (including the Chairwoman) received a total of CHF 1'157'600 in fees in 2019 (2018: CHF 1'143'350), including all attendance fees for committee meetings and conferences. No other forms of remuneration are paid, in particular no expenses. The Chief Executive Officer and the managing directors of the regional Cooperatives did not receive any form of remuneration in their role as members of the FMC Board of Directors.

The detailed disclosure of the remuneration paid to members of the Board of Directors is shown below:

Salaries of the Executive Board

The seven members of the FMC Executive Board (including the CEO) received a total of CHF 5.488 million in 2019 (2018: CHF 5.507 million). The highest single salary paid (Fabrice Zumbrunnen, Chief Executive Officer) was CHF 900'000 (2018: CHF 880'000). Two thirds of pension fund contributions are paid by the employer and one third by the employee.

Members of the Executive Board are provided with a company car. An expenses allowance is included in the salaries above. The members of the Executive Board are not entitled to any contractually regulated severance pay, and no variable remuneration is paid. The seven members of the Executive Board do not receive any form of remuneration for business-related seats on management boards, supervisory boards or foundation boards. The remuneration for any approved mandates outside the Migros Group is paid to the employer.